olivLaw · US equity research
Somnigroup International Inc. SGI
Household Furniture · SIC 2510 · Vertical: Household Furniture (SIC 2510)
Somnigroup International is the world's largest bedding company, selling through brands such as Tempur-Pedic, Sealy and Stearns & Foster, through Mattress Firm stores and through online and wholesale channels. After the 2025 Mattress Firm acquisition and the 2026 agreement to acquire Leggett & Platt, the company is in an integration phase, with quarterly sales slightly lower and adjusted EPS higher. Annual net sales were 7476.5 million USD in 2025, and second-quarter 2026 net sales were 1823.5 million USD.
At the close of 04 Nov 2026, Somnigroup International Inc. (SGI) stock was 69.81 USD (+6.82% on the day), with market capitalisation 14.7 bn USD, P/E 27.9 on diluted EPS of 2.50 USD over the last 12 months, dividend yield 0.92%, beta 1.15, 52-week range 61.49–97.99 USD. Latest reported quarter (Q2 2026): revenue of 1.8 bn USD (−3.0% YoY), net income of 110.9 m USD (+12.0% YoY), diluted EPS 0.52 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 63.6
- strong (55–70)
- Bollinger (20, 2)
- 60.13 – 67.63
- above the upper band · %B 1.29 · band width 11.7%
- SMA 50 / 200
- 64.30 / 73.28
- mixed trend
- MACD (12, 26, 9)
- 0.68 / 0.07
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +12.1% | −1.1% | +13.2 pp | — |
| 3 months | +0.3% | −0.5% | +0.8 pp | — |
| 6 months | −11.2% | +4.4% | −15.6 pp | — |
| Year to date | −21.8% | +12.3% | −34.1 pp | — |
| 1 year | −12.9% | +13.5% | −26.4 pp | +19.2% |
| 3 years | +78.8% | +76.4% | +2.4 pp | −9.8% |
| 5 years | +54.9% | +63.7% | −8.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.3 bn | 1.2 bn | 1.6 bn | 1.9 bn | 2.1 bn | 1.9 bn | 1.8 bn | 1.8 bn |
| Cost of revenue | 748.5 m | 723.4 m | 1.0 bn | 1.1 bn | 1.2 bn | 1.0 bn | 1.0 bn | 1.0 bn |
| Gross profit | 551.5 m | 484.5 m | 580.5 m | 827.2 m | 952.8 m | 822.7 m | 776.9 m | 817.2 m |
| Operating income | 201.8 m | 127.6 m | 13.2 m | 179.9 m | 314.7 m | 247.1 m | 187.1 m | 201.7 m |
| Depreciation & amortisation | 50.8 m | 52.3 m | 66.1 m | 68.6 m | 76.0 m | 79.8 m | 72.5 m | 73.4 m |
| Interest expense | 30.8 m | 36.3 m | 61.3 m | 72.5 m | 69.9 m | 64.2 m | 60.0 m | 59.0 m |
| Pre-tax income | 170.6 m | 95.7 m | -49.3 m | 102.7 m | 233.9 m | 193.7 m | 137.3 m | 147.8 m |
| Income tax | 40.8 m | 23.1 m | -16.5 m | 3.2 m | 56.2 m | 52.8 m | 33.4 m | 37.2 m |
| Net income | 130.0 m | 71.9 m | -33.1 m | 99.0 m | 177.4 m | 140.8 m | 104.2 m | 110.9 m |
| Diluted EPS | 0.73 | 0.40 ≈ | -0.17 | 0.47 | 0.83 | 0.66 ≈ | 0.49 | 0.52 |
| Operating cash flow | 256.6 m ≈ | 129.1 m | 106.4 m | 186.1 m ≈ | 408.2 m ≈ | 99.4 m | 246.5 m | 236.3 m ≈ |
| Capex | 16.4 m ≈ | 20.9 m | 24.0 m | 36.7 m ≈ | 47.9 m ≈ | 58.3 m | 60.5 m | 54.7 m ≈ |
| Dividends paid | 22.6 m ≈ | 22.6 m | 32.9 m | 31.5 m ≈ | 31.5 m ≈ | 31.5 m | 36.7 m | 35.8 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 82 percentile of its own 39-quarter history (min 3.6, median 15.3, max 55.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.7 bn | 3.1 bn | 3.7 bn | 4.9 bn | 4.9 bn | 4.9 bn | 4.9 bn | 7.5 bn |
| Revenue YoY | −1.9% | +14.9% | +18.4% | +34.1% | −0.2% | +0.1% | +0.1% | +51.6% |
| Net income | 100.5 m | 189.5 m | 348.8 m | 624.5 m | 455.7 m | 368.1 m | 384.3 m | 384.1 m |
| Net income YoY | −33.6% | +88.6% | +84.1% | +79.0% | −27.0% | −19.2% | +4.4% | −0.1% |
| Diluted EPS | 0.46 | 0.86 | 1.64 | 3.06 | 2.53 | 2.08 | 2.16 | 1.84 |
| Diluted EPS YoY | −83.4% | +87.0% | +90.7% | +86.6% | −17.3% | −17.8% | +3.8% | −14.8% |
| net % | 3.7% | 6.1% | 9.5% | 12.7% | 9.3% | 7.5% | 7.8% | 5.1% |
| Free cash flow | unavailable | unavailable | 543.4 m | 599.8 m | 72.3 m | 384.9 m | 569.2 m | 633.2 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 134.9 m USD
- Financial debt
- 4.7 bn USD
- Net debt
- 4.6 bn USD
- Equity
- 3.1 bn USD
- Total assets
- 11.6 bn USD
- Debt / equity
- 1.52x
- Current ratio
- 0.83x
- ROE
- 20.9%
- ROA
- 4.4%
- FCF margin
- 8.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 3.7 bn | 4.9 bn | 4.9 bn | 4.9 bn | 4.9 bn | 7.5 bn | SEC (XBRL)· 27 Feb 2026verified |
| Cost of revenue | 2.0 bn | 2.8 bn | 2.9 bn | 2.9 bn | 2.9 bn | 4.3 bn | SEC (XBRL)· 27 Feb 2026verified |
| Gross profit | 1.6 bn | 2.2 bn | 2.0 bn | 2.0 bn | 2.0 bn | 3.2 bn | SEC (XBRL)· 27 Feb 2026verified |
| Research & development | 23.1 m | 27.3 m | 29.2 m | 30.6 m | 30.8 m | 32.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Operating income | 532.1 m | 912.3 m | 680.6 m | 607.2 m | 634.2 m | 754.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Depreciation & amortisation | 202.5 m | 174.6 m | 180.2 m | 183.0 m | 201.5 m | 290.5 m | SEC (XBRL)· 27 Feb 2026verified |
| EBITDA | 734.6 m ≈ | 1.1 bn ≈ | 860.8 m ≈ | 790.2 m ≈ | 835.7 m ≈ | 1.0 bn ≈ | SEC (XBRL)· 27 Feb 2026derived |
| Interest expense | 77.0 m | 66.3 m | 103.0 m | 129.9 m | 134.8 m | 267.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Pre-tax income | 452.4 m | 824.0 m | 577.2 m | 474.1 m | 504.3 m | 481.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Income tax | 102.6 m | 198.3 m | 119.0 m | 103.4 m | 118.6 m | 95.7 m | SEC (XBRL)· 27 Feb 2026verified |
| Net income | 348.8 m | 624.5 m | 455.7 m | 368.1 m | 384.3 m | 384.1 m | SEC (XBRL)· 27 Feb 2026verified |
| Diluted EPS | 1.64 | 3.06 | 2.53 | 2.08 | 2.16 | 1.84 | SEC (XBRL)· 27 Feb 2026verified |
| Weighted average diluted shares | 212.3 m | 204.3 m | 180.3 m | 177.3 m | 178.2 m | 209.2 m | SEC (XBRL)· 27 Feb 2026verified |
| Dividend per share | — | 0.32 | 0.40 | 0.44 | 0.52 | 0.60 | SEC (XBRL)· 27 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 65.0 m | 300.7 m | 69.4 m | 74.9 m | 1.7 bn | 134.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Receivables | 383.7 m | 419.5 m | 422.6 m | 431.4 m | 404.5 m | 358.5 m | SEC (XBRL)· 27 Feb 2026verified |
| Inventories | 312.1 m | 463.9 m | 555.0 m | 483.1 m | 447.0 m | 630.0 m | SEC (XBRL)· 27 Feb 2026verified |
| Current assets | 968.4 m | 1.3 bn | 1.2 bn | 1.1 bn | 1.1 bn | 1.3 bn | SEC (XBRL)· 27 Feb 2026verified |
| Property, plant & equipment, net | 507.9 m | — | — | — | — | — | SEC (XBRL)· 19 Feb 2021verified |
| Goodwill | 766.3 m | 1.1 bn | 1.1 bn | 1.1 bn | 1.1 bn | 4.6 bn | SEC (XBRL)· 27 Feb 2026verified |
| Intangibles (excl. goodwill) | 630.1 m | 750.9 m | 715.8 m | 714.8 m | 700.5 m | 2.6 bn | SEC (XBRL)· 27 Feb 2026verified |
| Total assets | 3.3 bn | 4.3 bn | 4.4 bn | 4.6 bn | 6.0 bn | 11.6 bn | SEC (XBRL)· 27 Feb 2026verified |
| Accounts payable | 324.1 m | 432.0 m | 359.8 m | 311.3 m | 360.5 m | 401.6 m | SEC (XBRL)· 27 Feb 2026verified |
| Short-term debt | 43.9 m | 53.0 m | 70.4 m | 44.9 m | 69.5 m | 112.4 m | SEC (XBRL)· 27 Feb 2026verified |
| Long-term debt | 1.3 bn | 2.3 bn | 2.8 bn | 2.5 bn | 3.8 bn | 4.6 bn | SEC (XBRL)· 27 Feb 2026verified |
| Current liabilities | 974.8 m | 1.1 bn | 981.2 m | 908.2 m | 960.3 m | 1.6 bn | SEC (XBRL)· 27 Feb 2026verified |
| Total liabilities | 2.8 bn | 4.0 bn | 4.4 bn | 4.2 bn | 5.4 bn | 8.5 bn | SEC (XBRL)· 27 Feb 2026verified |
| Equity | 504.6 m | 285.8 m | -22.1 m | 323.4 m | 559.0 m | 3.1 bn | SEC (XBRL)· 27 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 654.7 m | 723.1 m | 378.8 m | 570.3 m | 666.5 m | 800.1 m | SEC (XBRL)· 27 Feb 2026verified |
| Capex | 111.3 m | 123.3 m | 306.5 m | 185.4 m | 97.3 m | 166.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Free cash flow | 543.4 m ≈ | 599.8 m ≈ | 72.3 m ≈ | 384.9 m ≈ | 569.2 m ≈ | 633.2 m ≈ | SEC (XBRL)· 27 Feb 2026derived |
| Investing cash flow | -146.6 m | -554.8 m | -315.3 m | -187.8 m | -96.7 m | -3.0 bn | SEC (XBRL)· 27 Feb 2026verified |
| Financing cash flow | -522.6 m | 76.5 m | -279.1 m | -384.3 m | 1.1 bn | 616.9 m | SEC (XBRL)· 27 Feb 2026verified |
| Dividends paid | 0 | 63.1 m | 70.5 m | 77.7 m | 92.7 m | 127.4 m | SEC (XBRL)· 27 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 56 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 14.7 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation33
- Returns48
- Quality88
- Balance sheet60
- Growth50
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 7.88 – 115.10 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)75.30 – 115.10 (Mid 90.82)WACC 9.3% · starting FCFF 958.3 m USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 3.0%
- Peers: EV/EBITDAunavailable · not enough peers
- Peers: P/E30.48 – 36.19 (Mid 30.54)3 companies used · median multiple 12.2x · quartiles 12.2x – 14.5xFLXS, LZB, XMAX
- Dividend discount (DDM)7.88 – 10.60 (Mid 9.04)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 56/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 13.0% | 85 (on a fixed band) | 10% |
| Net margin · Quality | 7.0% | 83 (vs peers) | 6% |
| FCF conversion · Quality | 144.2% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 15.0% | 100 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | -10.1% | 0 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 0.0x | 100 (on a fixed band) | 10% |
| Interest coverage · Balance sheet | 3.8x | 35 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 0.7x | 0 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 27.9x | 9 (on a fixed band) | 10% |
| EV/EBITDA · Valuation | 11.7x | 30 (on a fixed band) | 10% |
| FCF yield · Valuation | 5.2% | 65 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 0.9% | 13 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 17.6% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet60/100 · 3/3 factors with a value
- Growth50/100 · 2/2 factors with a value
- Quality88/100 · 3/3 factors with a value
- Returns48/100 · 2/2 factors with a value
- Valuation33/100 · 3/3 factors with a value
Memo
SOMNIGROUP INTERNATIONAL INC. (SGI). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 7.5 bn USD in 2025; YoY growth 51.6%; net margin 7.0%; ROE 17.6%; net debt/EBITDA 0.0x.
The estimated value range is 30.48–36.19 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 30.54 USD, the price of 69.81 USD leaves a potential of -56.3% (value / price − 1) and a margin of safety of -128.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 56/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 13.0%
- Net margin: 7.0%
- FCF conversion: 144.2%
- Revenue CAGR 3Y: 15.0%
- Net debt / EBITDA: 0.0x
- Payout ratio (FCF): 17.6%
What contradicts it
- EPS CAGR 3Y: -10.1%
- Current ratio: 0.7x
- P/E (TTM): 27.9x
- EV/EBITDA: 11.7x
- Shareholder yield (distributions): 0.9%
- The price is above the estimated value range
- The valuation methods diverge
Versus the vertical median
Household Furniture (SIC 2510) · same industry (4-digit SIC) · compared with 6 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SGISomnigroup International Inc. | 14.7 bn | 27.9 | 17.6% | 7.0% | +51.6% | −13% / +79% |
| LZBLa-Z-Boy Incorporated | 1.3 bn | 16.7 | 8.0% | 3.9% | +0.8% | −15% / −6% |
| CODICompass Diversified Holdings | 926.2 m | — | -17.7% | -5.3% | +4.8% | +67% / −39% |
| XMAXXmax Inc. | 336.8 m | 12.2 | 52.9% | 185.9% | +72.6% | −6% / +155% |
| FLXSFlexsteel Industries, Inc. | 312.1 m | 12.2 | 20.5% | 6.7% | +4.1% | +90% / +343% |
| HOFTHooker Furnishings Corporation | 165.2 m | — | -9.9% | -8.7% | −12.4% | +44% / −14% |
| PRPLPurple Innovation, Inc. | 44.8 m | — | — | -8.9% | −3.9% | −86% / −82% |
1- and 3-year price returns: for SGI from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 46.23 Total return -33% · Per year -33% | 81.35 Total return 18% · Per year 18% | 122.03 Total return 76% · Per year 76% |
| 3 years | 54.79 Total return -19% · Per year -7% | 107.51 Total return 58% · Per year 16% | 175.60 Total return 156% · Per year 37% |
| 5 years | 64.94 Total return -2% · Per year -0% | 142.08 Total return 111% · Per year 16% | 252.69 Total return 272% · Per year 30% |
- Exit P/E± 26.88
- Net margin± 18.81
- Annual revenue growth± 14.04
- Annual dilution± 1.58
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Somnigroup International is the world's largest bedding company, selling through brands such as Tempur-Pedic, Sealy and Stearns & Foster, through Mattress Firm stores and through online and wholesale channels. After the 2025 Mattress Firm acquisition and the 2026 agreement to acquire Leggett & Platt, the company is in an integration phase, with quarterly sales slightly lower and adjusted EPS higher. Annual net sales were 7476.5 million USD in 2025 1, and second-quarter 2026 net sales were 1823.5 million USD 3.
SWOT
Strengths
- A portfolio of recognized brands, an extensive omni-channel network and vertical integration from manufacturing to retail 1.
- Cash generation capacity, with record operating cash flows in the second quarter of 2026 3.
- A product innovation program supported by several research and development centers and a large base of patents and trademarks 1.
Weaknesses
Opportunities
Threats
Risks
- Acquisition integrationhigh
Integrating Mattress Firm and a possible integration of Leggett & Platt could bring unforeseen costs and delay the announced synergies 12.
- Raw material costshigh
Volatility in foam, polyester and steel prices could hurt gross margin if price increases do not fully offset them 13.
- Consumer demandmedium
Macroeconomic pressure on consumers could reduce store and online sales, as seen in the second quarter of 2026 3.
- Compliance with merchandising commitmentsmedium
Failure to meet the obligation to allocate floor space to third-party premium mattresses could lead to regulatory action or litigation 1.
- Cybersecuritymedium
Cyberattacks and failures at third-party IT providers could disrupt operations and expose customer data 1.
Investment thesis
What would need to be true (bull case)
- If Mattress Firm acquisition synergies keep lifting margins, the company could deliver the adjusted EPS growth it has guided 3.
- Its leading global position and strong brand portfolio could support market share even in a fragmented industry 1.
- High operating cash flow and lower leverage could support dividends and share buybacks 3.
What would break the thesis
- If Mattress Firm sales keep falling because of store closures, synergies may not be enough to offset the pressure 3.
- High debt and the Leggett & Platt acquisition could limit financial flexibility if demand cools 23.
- Growing online competition and private-label retailers could erode margins over the long term 1.
What to watch
- Completion of the Leggett & Platt acquisition and its effect on share countQ3 2026
- Mattress Firm sales trend and store countQ3 2026
- Delivery of the adjusted EPS guidance of 2.85 to 3.15 USD2026
- Annual 10-K for 2026 and details on Leggett & Platt integrationnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Somnigroup presents itself as the world's largest bedding company, with integrated design, manufacturing, distribution and retail, serving consumers in over 100 countries through Tempur Sealy, Mattress Firm and Dreams 1. The portfolio includes recognized brands such as Tempur-Pedic, Sealy and Stearns & Foster, and the group operates over 2,800 stores, about 30 e-commerce platforms and over 70 manufacturing facilities 1. The company renamed itself Somnigroup after the Mattress Firm acquisition, and its stated strategy is earnings growth with high return on invested capital and strong free cash flow 1.
The sales model is omni-channel, with two main channels: Direct, which includes company-owned stores, e-commerce and call centers, and Wholesale, meaning sales to third-party retailers, hospitality and healthcare customers 1. The Direct channel rose to 63.5% of net sales in 2025 from 24.9% in 2024, mainly due to the Mattress Firm acquisition 1. The company also has an OEM business producing non-branded mattresses and pillows for third-party retailers 1.
On August 6, 2026, the company reported a quarter with net sales down 3.0% and revised its adjusted EPS guidance 3. In April 2026 it also agreed to acquire Leggett & Platt in an all-stock transaction, expected to close by the end of the third quarter of 2026 23.
Segments
Mattress Firm
The Mattress Firm segment consists of stores and distribution centers in the U.S. and sells only through the Direct channel; second-quarter 2026 sales were 922.2 million USD, down 2.8%, mainly because of store closures 3.
Tempur Sealy North America
This segment covers the U.S., Canada and Mexico, with sales through Direct and Wholesale channels; sales to Mattress Firm are eliminated on consolidation, and gross margin rose in the second quarter of 2026 thanks to acquisition synergies 3.
Tempur Sealy International
The segment covers Europe, Asia-Pacific and Latin America and had relatively stable sales in the second quarter of 2026, with a slight sales increase but a lower operating margin due to raw material cost pressure 3.
Market context
The company describes the global sleep industry as a 120 billion USD market structured for long-term growth, supported by innovation, growing awareness of the link between sleep and health, and household formation 1. The industry is fragmented internationally, while the U.S. manufacturer market is concentrated and the retailer market fragmented 1. In 2025 the industry was pressured by macroeconomic factors, and the company expects to outperform the industry through new product launches 12.
The market is moving toward direct-to-consumer online sales and retailer private labels, creating channel competition 1. In 2026 the company noted that tariff policy remains uncertain and that some raw materials, such as polyurethane foam and steel, are volatile 12.
Trends
- Raw material cost pressureheadwind
Prices of polyurethane foam, polyester and steel components are volatile, and inflation has raised costs; the company implemented price increases after the second quarter of 2026, which could limit margin loss if demand holds up 13.
- Mattress Firm integration and synergiestailwind
Synergies from the Mattress Firm acquisition improved the North America segment margins, and adjusted operating income rose in the second quarter of 2026 3.
- Trade tariffsmixed
The company states that most products sold in the U.S. are made locally, which could reduce tariff impact, but the duration and extent of tariffs remain uncertain 12.
- Store closures and weaker demandheadwind
Mattress Firm sales fell in the second quarter of 2026 because of store closures and weaker demand, and consumers have become more cautious 3.
Competitive position
The company operates in a bedding industry where competition is based on price, quality, brand recognition, product availability and performance 1. Competitors include manufacturers selling direct to consumers and retailers developing private labels, and low-end imported beds have been cited as pressure 1.
The U.S. manufacturer market is concentrated and the retailer market fragmented, while the international market is regional and local 1. Vertically integrated retailers could negatively affect the company's sales, and the pillow market has no dominant player 1.
- Third-party bedding retailers and specialty chains
Third-party retailers named in the source, including multi-brand retailers and competitors' own stores, compete for the same distribution channels 1.
- Direct-to-consumer online mattress makers
Several American and international companies have entered direct-to-consumer online models for mattresses, intensifying price competition 1.
- Retailers with private-label products
Retailers developing their own products compete with the company's Sleepy's brand and wholesale brands 1.
- Component and pillow producers
Competition in components and pillows is fragmented, with many regional participants 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Somnigroup (SGI) Just Closed A Deal That Reshapes Its Entire Supply ChainYahoo Finance — News · 18 Sept 2026 · EN
SEC filings
- Current report26 Aug 2026Acquisition or disposition of assets · Creation of a direct financial obligation · Regulation FD disclosure · Financial statements and exhibits
- Current report25 Aug 2026Regulation FD disclosure
- Quarterly report07 Aug 2026
- Current report06 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Current report06 Aug 2026Results of operations · Other events · Financial statements and exhibits
- Current report27 Jul 2026Material agreement · Creation of a direct financial obligation · Regulation FD disclosure · Financial statements and exhibits
- Current report04 Jun 2026Regulation FD disclosure
- Current report15 May 2026Amendments to articles or bylaws · Shareholder vote · Financial statements and exhibits
- Quarterly report08 May 2026
- Current report07 May 2026Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Somnigroup International Inc. · 27 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Somnigroup International Inc. · 07 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Somnigroup International Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.